Kate Manderlyis a winemaker who is the sole director and shareholder of Cross Key Wines Pty Ltd. The company operatesa vineyard in Gippsland with fifteen employees. The company has $800 000 in assets, wine-making equipment and a twenty year lease over the vineyard. Cross Key white wines have become very popular with the drinking public.Kate recently expanded the offering to include red wines. In order to do this, Kate purchased a second vineyard in the Coonawarra region of South Australia. Ten experienced investors invested$500000 each in return for:

a)5% equity each;

b)guaranteed dividends until each investors stake is returned (after a period of 5 years).The investors then intend to remain as shareholders, although dividends will no longer be guaranteed; and

c)Security over the entire property and shares of the company under the Personal Property Securities Register (PPSR)The prospectus contains the following words: Funds raised will be principally utilised to purchase land inthe Coonawarra Region of South Australia, and wine making equipment.

One of the new investors Tim has become very troublesome, asking difficult questions. The other shareholders are planning to squeeze Tim out by cancelling his shares atthe Annual General Meeting. Advise Kate as to the likely outcome if the other shareholders attempt this?